Anglo American (AAL LN) – Q3 production recovery | Bluejay Mining* (JAY LN) – Danish Maritime Authority accepts Navigational Safety for Dundas titanium sand mine | Empire Metals* (EEE LN) –– Drilling starts at Eclipse gold project in Kalgoorlie, Western Australia | KEFI Gold and Copper* (KEFI LN) – Tulu Kapi $221m funding consortium update | Hochschild Mining (HOC LN) – Guidance maintained as production rises in Q3 | Serabi Gold* (SRB LN) –– Expansion of Sao Chico exploration area | Trans-Siberian Gold (TSG LN) – 9M20 revenues hit record high on strong gold prices | Vast Resources* (VAST LN) – Baita plant up and running with first concentrate shipment due shortly
Companies: AAL JAY EEE KEFI HOC SRB TSG VAST
BlueRock Diamonds (BRD LN) 56p, Mkt cap £5.1m – 2,900cts of diamonds sold for $300/ct | Europa Metals Limited (EUZ LN) 11.25p, Mkt Cap £1.2m – Grant awarded to progress the Toral zinc, lead, silver project in Spain | Orosur Mining* (OMI LN) 42.5p, Mkt Cap £58.5m – FY Q1 2021 Results | Serabi Gold* (SRB LN) – 104.5p, Mkt Cap £60.4m – Expansion of Sao Chico exploration area | Shanta Gold (SHG LN) 19p, Mkt Cap £156m – FY20 guidance reiterated, hedge free status by Jan/21 | SolGold* (SOLG LN) 38p, Mkt Cap £779m – Progress report on second hole at Porvenir | Talga Resources* (TLG AU) – A$0.90, Mkt cap £239m – Talga appoint new Group COO and European CEO to be based in the UK and Sweden
Companies: BRD OMI SRB SHG SOLG
Arkle Resources* (ARK LN) – H1 results highlight resumption of drilling at Stonepark and exploration potential of gold projects | Bluebird Merchant Ventures (BMV LN) – Gold-prepayment funding for US$5-20m from South Korean investors | Central Asia Metals (CAML LN) – Sasa TSF4 update | Kenmare Resources (KMR LN) – Wet Concentrator Plant moved to Pilivili | Keras Resources* (KRS LN) – Change in government in Togo | Rambler Metals and Mining* (RMM LN) – Raising funds to establish 1350tpd and examine further expansion | Scotgold Resources* (SGZ LN) - BUY – 141p – Exploration progress around Cononish | Serabi Gold* (SRB LN) – Preliminary licence for Coringa approved
Companies: ARK BMV CAML KMR KRS RMM SGZ SRB
Amur Minerals* (AMC LN) - £6.1m equity raise and Australian iron ore project investment | Condor Gold* (CNR LN) – Director adds to his shareholding | Eurasia Mining *(EUA LN) – Approval for licenses for Monchetundra Flanks | Petropavlovsk (POG LN) – Resignation of Auditor | Phoenix Copper* (PXC LN) – First results from 2020 drilling programme at Red Star | Serabi Gold* (SRB LN) – Expansion of the Sao Chico exploration licence
Companies: AMC CNR EUA POG PXC SRB
luejay Mining* (JAY LN) –Final public consultation meeting completed for Dundas project | Condor Gold* (CNR LN) – Interim results and project update | Europa Metals Limited (EUZ LN) – Resource update for Toral zinc, lead, silver project in Spain | Exxaro (EXX J) – Exxaro EBITDA rise 40% due to higher coal exports and lower South African rand | Horizonte Minerals (HZM LN) – Interim Results | Pure Gold (PUR LN) - Q2 Results maintain first-ore production guidance | Serabi Gold* (SRB LN) – Strong quarterly cash-flow as gold price lifts profits 142% | Sibanye-Stillwater (SSW J) - Higher gold, palladium, rhodium and platinum prices combine with weak rand to raise earnings
Companies: JAY CNR EUZ LCQ HZM SRB 47V
Centamin (CEY LN) – H2 profits rise 280% as company maintains 2020 production guidance | Chaarat Gold* (CGH LN) - BUY– H1/20 production in at 27koz with FY20 guidance reiterated at 55koz, Tulkubash
funding closure on course for YE20 | Edenville Energy* (EDL LN) – Rukwa coal operations restart | Pensana Rare Earths (PRE LN) – Final drilling results from Longonjo | Serabi Gold* (SRB LN) – Extension to drawdown period for the convertible loan | Versarien (VRS LN) - Launch of graphene enhanced protective face mask
Companies: CEY CGH EDL PRE SRB VRS
Greatland Gold (GGP LN) – New zone of mineralisation discovered at Havieron | IronRidge Resources (IRR LN) – Visble gold seen in Zaranou gold project in Ivory coast | Petra Diamonds (PDL LN) – FY 2020 confirms Covid19 disruption of the diamond pipeline | Petropavlovsk (POG LN) – POX Hub drives 42% growth in production in H1 | Rambler Metals* (RMM LN) CLICK FOR PDF – H1 operating results impacted by Covid19 containment measures | Serabi Gold* (SRB LN) –– Q2 production results | Syrah Resources (SYR AU) – Balama graphite mine in Mozambique remains closed through Q2 as work continues at Vidalia anode plant
Companies: GGP IRR PDL POG RMM SRB SYR
Arc Minerals* (ARCM LN) –- Arc Minerals raises £2.37m at 1.7p per share | Asiamet Resources (ARS LN) – Progress on permitting the BKM copper project \ Aura Energy* - (AURA LN) – Further issue of shares | Ormonde Mining* (ORM LN) – Covid19 measures | Serabi Gold* (SRB LN) – Q1 results | Sibanye-Stillwater (SSW JSE) – CEO calls for South Africa to allow underground mines to run at full capacity | Sunrise Resources Plc (SRES LN) – CS Project environmental assessment
Companies: ARCM ARS AURA ORM SRB SRES
Aura Energy* - (AURA LN) – Issue of shares | Altus Strategies* (ALS LN) – Tabakorole geophysical survey identifies new targets | Caledonia Mining* (CMCL LN) – AGM Procedures | Chaarat Gold* (CGH LN) - BUY – Completion of a $13.8m placing | Empire Metals* (EEE LN) (formerly Georgian Mining GEO LN) – Acquisition of control in Australian Palladium Deposit | Mkango Resources* (MKA LN) - COVID-19 safety measures for Malawi | Scotgold Resources* (SGZ LN) BUY – 119p – Earnings update: delivering gold at Cononish | Serabi Gold* (SRB LN) –– Appointment of non-executive director | Vast Resources* (VAST LN) – Baita Plai parts and equipment shipment update
Companies: AURA CMCL CGH GEO MKA SGZ SRB VAST
Bluejay Mining* (JAY LN) – US aid and consulate to help Greenland develop mineral resources | Gem Diamonds (GEMD LN) – Resumption of operations at Letseng | KEFI Minerals (KEFI LN) – Tulu Kapi project update Serabi Gold* (SRB LN) – Amended terms for Coringa acquisition confirmed
Companies: JAY GEMD KEFI SRB
BlueRock Diamonds* (BRD LN) – Extension to lockdown in South Africa till end April | Bluejay Mining* (JAY LN) – MoU with trader for 200ktpa of ilmenite | Chaarat Gold* (CGH LN) – FY19 financial results | Hochschild Mining (HOC LN) – Temporary suspension of the final dividend | Orosur Mining* (OMI LN) – Q3 results | Phoenix Copper* (PXC LN) – Reports a 32% reduction in losses for 2019 | Rambler Metals* (RMM LN) – Covid19 mitigation measures | Serabi Gold* (SRB LN) –– March delivers highest monthly gold production since operations began
Companies: BRD JAY CGH HOC OMI PXC RMM SRB
Companies: CPT SRB UFO FOX MOS NUOG CBOX JIM GCM
Arc Minerals* (ARC LN) – Royalty agreement signed with royalty agreement with Golden Square Equity Partners Limited | Bluejay Mining* (JAY LN) – Greenland waives mineral exploration license obligations for 2020 | Caledonia Mining* (CMCL LN) – Q1 production rises 19% | Central Asia Metals (CAML LN) – Maintaining 2020 production guidance for now | Cora Gold* (CORA LN) – Drilling suspended at Madina Foulbe on official COVID-19 related instructions | Eurasia Mining (EUA LN) SUSPENDED – Operations and corporate update | Kenmare Resources (KMR LN) – Draws on facilities to weather Coronavirus storm | Rambler Metals* (RMM LN) – Appointment of non-executive director | Renascor (RNU AU) - Work Continues on Siviour Graphite Project despite COVID-19 | Serabi Gold* (SRB LN) –– Amended payment schedule for Coringa acquisition
Companies: ARCM JAY CMCL CAML CORA EUA KMR RMM SRB
Anglo Asian Mining* (AAZ LN) – Production maintained amid escalating state COVID-19 containment measures | Adriatic Metals* (ADT1 LN) – Gravity data reveals additional targets | Ariana Resources* (AAU LN) – Subsidiary pays Ariana £1.6m dividend | Aura Energy* (AURA LN) – Postponement of EGM | Caledonia Mining (CMCL LN) – Virus mitigation measures in place | Gem Diamonds (GEMD LN) – Letseng placed on care and maintenance | Polymet Mining* (PLM N) - Minnesota Supreme Court will hear appeal on three PolyMet permits | Sunstone Metals Limited (STM AU) – Identification of high-grade gold-copper porphyry targets at Bramaderos | Serabi Gold* (SRB LN) –– Higher gold prices and falling Brazalian real
Companies: AAZ ADT1 AAU AURA CMCL GEMD SRB
Danakali (DNK LN) – Completion of Phase 1 mobilisation at Danakali | Gem Diamonds (GEMD LN) – Letseng recovers 114 carat diamond | Serabi Gold (SRB LN) – Step out drilling further extends mineralised envelope at Sao Chico | Talga Resources* (TLG AU) – Environmental approval for Stage 1 trial mine of 25,000t graphite | Renascor Resources Ltd* (RNU AU) – Support from Australian government Export Finance Agency
Companies: DNK GEMD SRB TLG
Research Tree provides access to ongoing research coverage, media content and regulatory news on Serabi Gold PLC.
We currently have 69 research reports from 4
Forecast and valuation update
Companies: HUR HUT HRCXF
Anglo Asian Mining is an AIM listed precious and base metals producer running flagship Gedabek operations in western Azerbaijan which include open pit and underground mining facilities and a processing complex fit for different types of ores. Production runs at ~70-80kozpa GEO (~90% gold) with low operating costs status allowing the Company to generate FCF for organic growth opportunities within the highly prospective +1,000km2 land package and potential value accretive transactions over targets outside Azerbaijan as well as offer a generous dividend yield.
Companies: Anglo Asian Mining PLC
Shanta Gold (AIM: SHG) has announced this morning its production and operational results for the quarter ended 30th September 2020 – see Fig 1. Overall this was a robust performance (from one of the most consistent operators in the sector) in the face of the pandemic and a very busy quarter for the company at corporate level. QoQ production fell to 19,973 oz and AISC rose to $883/oz – both caused by a temporary drop in grade – but the ongoing strength in the gold price resulted in a 16% and 46% increase in EBITDA QoQ and YTD respectively. There was an increase in net debt to $5.1m which can be explained by the $7.1m cash outlay for the West Kenya projects as well as the reduction in the hedge book (they also have $5.9m of gold dore in the gold room). The company remains on track to hit its full year guidance of 80-85koz of production at an AISC of $830-880/oz which would make it the third year in a row they have hit their unaltered guidance for the year. This would be a remarkable achievement for a major gold miner operating in a developed market let alone one operating in the South West corner of Tanzania. Likewise the fact the company has recorded zero lost time injuries makes it nearly three years in a row with no LTIs. With the greenlight for Singida and a scoping study completed for the West Kenya Project during the quarter, the company can look forward to leveraging this operational expertise across a larger and longer life production base (c.220Koz of annualised production). We continue to believe the market is still to wake up to this given a market cap of US$219m, next to no debt and EBITDA annualising at $90m.
Companies: Shanta Gold Limited
Oil posted a small weekly gain on tentative signs that demand is picking up even as a new wave of coronavirus cases casts a shadow over the market.
Futures in New York edged lower on Friday, but still managed to record an advance of 0.7% this week on shrinking US crude stockpiles and signs of improving demand in China and India. Gains were capped by record new virus cases from Germany to Portugal and the biggest surge in US daily infections in two months.
Crude futures in New York have clung close to the $40-a-barrel mark since September amid uncertainty around a demand recovery as the virus rages. Meanwhile, OPEC producers and allies see a risk of an oil surplus next year if Libya's production rises and demand remains depressed.
At the same time, the market's structure continues to strengthen, with the spread between Brent's nearest contracts at its narrowest since late July. For West Texas Intermediate futures, the prompt spread rallied to its tightest contango in a month.
West Texas Intermediate for November declined 8 cents to settle at $40.88 a barrel.
Brent for December settlement lost 23 cents to $42.93 a barrel. The contract rose 0.2% this week.
Prices pared earlier losses on Friday after American retail sales and consumer sentiment indicators topped estimates.
The Organization of Petroleum Exporting Countries and its allies are facing pressure to postpone their plans for tapering output cuts. Given the uncertainty over the oil demand outlook, the right course of action is to wait for now, JPMorgan analysts including Natasha Kaneva wrote in a report. The move to add another 2 million barrels of day onto the market in January could be postponed by a quarter, the report said.
OPEC+ is also contending with the unexpected return of Libyan oil output, which hit 500,000 barrels a day this week. The group forecasts that global oil supplies could increase by 200,000 barrels a day next year if Libya manages to revive supply and the pandemic hits demand harder than expected, according to a document seen by Bloomberg.
Companies: FOG PVR 88E DGOC EME TRIN UOG
Trifast has released an interim trading update which highlights trends that have continued from the AGM statement in September with trading slightly ahead of the Group's base case assumptions for FY21 of revenue down c.16% YoY. September was the strongest month in the Group's first half and the press release indicates that October has also started well for sales and orders. The trading update indicates resilience in the business considering the tough trading environment.
Companies: Trifast plc (TRI:LON)Trifast plc (25D:BER)
GeoPark (GPRK US)C; Target price US$20 per share: Drilling at CPO-5 has started - The 3Q20 operating update did not contain any surprises, with overall production increasing by 5% vs the previous quarter, reflecting higher sales in Brazil, Argentina and Chile. Importantly, gross production at Llanos-34 is back to 60 mbbl/d with some work-over backlog and development drilling having restarted. Overall net production (across all of GeoPark’s assets) was 40 mboe/d at the end of September and FY20 production guidance of 40-42 mboe/d has been reiterated (2H20 capex guidance of US$25-35 mm). Drilling at CPO-5 (GeoPark WI: 30%) has now commenced with the Indico-2 appraisal well. With the Indico-1 well still producing 5,169 bbl/d since first oil in December 2018, Indico-2 could add 60% to CPO-5 overall production by YE20 in a success case. GeoPark will publish its 2021 capex budget on 4 November. We view this as an important event as this will provide further visibility on a very exciting drilling programme with 5-7 wells at CPO-5 and 1-2 wells in Ecuador. The exploration program for 2021 will likely test the continuity of the Guadalupe play encountered on Llanos-34 into CPO-5.
Tethys Oil (TETY SS)C; Target price SEK75.00 per share: Initiating coverage - Tethys Oil is a well-funded, dividend-paying, Sweden listed US$160 mm market cap E&P with ~25 mmbbl 2P reserves in Oman and ~10 mbbl/d WI production. The company stands apart from its peers in three principal ways: (1) It has achieved “textbook” execution, turning what was initially a small uncommercial onshore discovery on a tiny portion of Blocks 3&4 into a large field that has already produced ~100 mmbbl with a further ~120 mmbbl 3P reserves. (2) The production is very cash generative even at US$40/bbl. At US$45/bbl, even at the currently OPEC constrained production rate, operating cashflow funds all development plus some exploration activities and allows Tethys to pay a 5% dividend. (3) Tethys is conservatively run with US$60 mm in cash and no debt. Historically, the story was about steady y-on-y production, reserves and dividend growth. While these features are still present, an investment in Tethys now also offers diverse exposure to high impact exploration with drilling activities on recently acquired onshore blocks expected to start before YE20. Our target price of SEK75 per share reflects ReNAV and implies over 70% upside.
IN OTHER NEWS
Alvopetro (ALV CN): Production update in Brazil – 3Q20 sales were 1,764 boe/d at the Caburé Project.
Maha Energy (MAHA-A SS): Production and capex guidance update – FY20 production (mostly in Brazil) is expected to stand at 3,700–4,000 boe/d (4,000-5,000 boe/d previously). The FY20 capex budget increased by US$8.7 mm to US$24 mm. YE20 production is expected to be 5,200 – 5,700 boe/d.
Pantheon Resources (PANR LN): Resources update in Alaska – The Kuparuk formation at the Talitha project is estimated to contain 1.4 billion bbl of oil in place (OIP) and a Prospective Resource of 341 mmbbl as a most likely case.
Touchstone Exploration (TXP LN): Discovery in Trinidad – The Chinook well encountered 589 net feet of gas pay in three unique thrust sheets in the Herrera sands. Additional natural gas pay of ~20 net feet was encountered in the shallower Cruse formation. Completion and testing of the well is expected to be undertaken in 1Q21.
Trinity Exploration and Production (TRIN LN): 3Q20 operational update in Trinidad – 3Q20 production was 3,135 bbl/d. The company held US$22.2 mm in cash as at 30 September. FY20 production guidance remains 3,100-3,300 bbl/d.
Aker Bp (AKERBP NO): 3Q20 update in Norway – Aker BP produced 201.6 mboe/d in 3Q20. The FY20 production guidance of 205-220 mboe/d is reiterated.
UK Oil & Gas (UKOG LN), Angus Energy (ANG LN) and Egdon Resources (EDR LN): Onshore UK licence relinquished – Long-reach/shallow wells at the Holmwood prospects are neither technically viable nor economically feasible. The licence has been relinquished.
FORMER SOVIET UNION
Caspian Sunrise (CASP LN): Operating update in Kazakhstan – Production at the MJF structure averaged ~1,340 bbl/d. The completion of maintenance activities, the return to production of Well 141 and the installation of a pump at Well 151 are expected to increase production capacity to 2,200 - 2,500 bbl/d.
Enwell Energy (ENW LN): Ukraine update – 3Q20 production in Ukraine was 4,629 boe/d. The company held US$55.7 mm in cash at the end of September.
Kosmos Energy (KOS US/ LN): RBL Redetermination – Kosmos’ RBL credit facility has been redetermined with US$1.32 billion, a reduction of US$130 mm from the previous drawn amount of US$1.45 billion. Repayment of the reduction in borrowing base will be made from available liquidity in 4Q20.
EVENTS TO WATCH NEXT WEEK
20/10/2020: Touchstone Exploration (TXP LN) - Webinar
Companies: TXP ALV ALVOF A6Y DETNOR AKERBP DETNOR DETNF ARC RO1 CASP ROXIF GPRK KOS 7M7 0GEA MAHAA PANR P3K PTHRF TETY TETY UKOG 0UK UKLLF
Despite the absence of new drilling activity, Trinity's Q3/20 production has remained robust, averaging 3,135bopd - an 11.3% YoY increase (Q3/19: 2,816bopd). YTD 2020 average production volumes have averaged 3,232bopd, a 9.8% YoY increase (YTD 2019: 2,943bopd), with 2020 production guidance remaining unchanged at 3,100-3,300bopd. Oil price realisations YTD 2020 have averaged US$37.3/bbl and, as a result, no Supplemental Petroleum Tax (SPT) will be payable in respect of the first three quarters of 2020. Cash as at 30 September 2020 was US$22.2m (30 June 2020 US$19.7m). Elsewhere, we view the proposed Budget reforms to the SPT regime as an important step forward by the Trinidad and Tobago Government and a recognition that SPT needs reforming. The proposed reforms will enhance cash flows between US$50-US$75/bbl and therefore allow companies to invest to grow production and deliver attractive returns for shareholders. We update our valuation and reiterate our price target at 31p per share, a 250% premium to the current share price.
Companies: Trinity Exploration & Production Plc
Proposed merger with Chrysaor
Companies: Premier Oil plc
Central Asia Metals (CAML LN) reported strong copper results for Q3 2020, up 14% QoQ to 3.9kt enabling a 3.7% increase in our 2020F production forecast to 13.9kt, in line with new guidance of 13.5-14kt. YTD copper production of 10.5kt was broadly flat YoY. This does imply a marginal YoY increase overall for 2020F, however, as well as realised grades being ahead of expectation, we expect CAML to push hard at Kounrad to offset Sasa disruption as much as possible. Kounrad has been out of focus recently, however, with copper prices up 10% YTD and with a strong fundamental outlook, the asset’s low cost base continues to underpin the CAML investment case.
Companies: Central Asia Metals Plc
Talitha Kuparuk resource update
Companies: Pantheon Resources plc
Goldplat the processor of gold-bearing wastes and residues from mining operations today reports on its first quarter ending Septe2020. As expected the company continues to maintain robust operating profits from its South African operation (£1.12m, up from £1.07m in the same period last year) and an increased operating profit from its Ghana operation (£0.28m up from £23k). Goldplat is in the process of selling its Kilimapesa gold mine in Kenya which contributes small operating losses to the Groups overall performance with the sale expected to finalise by the end of December.
Companies: Goldplat plc
Valeura Energy (VLE CN/VLU LN): Selling Turkey shallow – Valeura is selling its producing shallow conventional gas business to TBNG for a cash consideration of US$15.5 mm, plus royalty payments of up to an additional US$2.5 mm.
Increased estimates of of gas discovery offshore Turkey – The Tuna-1 discovery in the Black Sea is now estimated to hold 14.2 tcf (up 3 tcf compared to previous estimates).
FAR Limited (FAR AU): Financial update – FAR continues to be in default with regards to its obligations in Senegal. The company is in a default position of US$29.6 mm (excluding interest). FAR had US$59.0 mm unrestricted cash at hand at 30 September 2020.
Tullow Oil (TLW LN): Approval to sell Uganda – Tullow has received government approvals with regards to the sale of Uganda to Total. The transaction is expected to close in the coming days.
EVENTS TO WATCH NEXT WEEK
27/10/2020: Bp (BP LN) – 3Q20 results
29/10/2020: Royal Dutch Shell (RDS LN) – 3Q20 results
29/10/2020: Aker Bp (AKERBP NO) – 3Q20 results
29/10/2020: Repsol (REP SM) – 3Q20 results
30/10/2020: Lundin Energy (LUNE SS) – 3Q20 results
30/10/2020: Seplat Petroleum (SEPL LN) - 3Q20 results
Companies: FAR VLE TLW
Bushveld is an integrated vanadium mining, processing and technology businesses. The South African group owns 74% of Vametco and 100% of the Vanchem. Bushveld Energy (84%) is developing vanadium redox batteries for grid use in SA. Bushveld FY 2019 figures are dominated by the positive revaluation of the acquisition of Vanchem (100%) for US$55.8m in November 2019.
Companies: Bushveld Minerals Limited
Lithium in London with a focus on European projects
This corporate sector note on lithium will comment on the European lithium raw material sector and how the advanced projects being developed by Savannah Resources, European Metals Holdings and European lithium fit into the European-regional picture. Lithium production from these projects, once commissioned, will go some way to creating a domestic supply of this critical metal within Europe.
• Savannah Resources – Developing the Mina Do Barroso project in Portugal as a producer of spodumene concentrate. The project is in Feasibility.
• European Metals Holdings – Developing the Cinovec project in the Czech Republic as an integrated producer of lithium hydroxide / carbonate. The project is in Feasibility.
• European Lithium – Developing the Wolfsburg project in Austria as an integrated producer of lithium hydroxide. The project is in Feasibility.
Companies: KDNC EMH SAV
Oil posted its first back-to-back weekly loss since April's rout with the end of the summer driving season and concern about OPEC's production compliance weighing on prices.
Futures in New York edged up on Friday, but prices fell 6.1% this week coinciding with a retreat in U.S. equities. Traders are also examining data indicating the United Arab Emirates since July has been regularly exceeding its quota under a deal between the Organization of Petroleum Exporting Countries and its allies.
The uncertainty over how much supply OPEC+ is returning to the market adds another wrench in the recovery for oil prices still reeling from the pandemic-driven blow to consumption. While U.S. supplies had grown tighter in past months and producers were expected to restrain production amid a weak financial backdrop, stockpiles rose again last week for the first time since mid-July.
Companies: 0R1M 0J50 JSE 88E ADV CAD CHAR ECHO ENOG EME I3E PMG RBD SQZ SOU TLW VGAS WTE PHAR